Gold Prices Pass a Record $1,380-an-Ounce on Inflation Fears

Before you go, we thought you'd like these...
Before you go close icon

goldGold futures surpassed a record price of $1,380 an ounce Thursday on investor fears that the Federal Government's new $600 billion stimulus package may spur inflation and devalue the U.S. dollar.

Gold futures for December rose 3.4% to $1,383.20 an ounce at about 2:40 p.m. Eastern time Thursday after touching an intraday high of $1,384.30. Silver futures for December were up more than 6% Thursday to $25.97 an ounce.

Precious metal prices have been rising all year as investors look for a safe haven amid fears of currency volatility. Gold is perceived as a safe investment as countries look to boost their economies by using monetary policy to increase liquidity and cut borrowing costs.

Gold and silver received a further boost after the U.S. Federal Reserve on Wednesday launched the second phase of its quantitative easing program, the so-called QE2. The Fed will buy up to $600 billion more in long-term U.S. Treasury bonds in an effort to stimulate a U.S. economy that many say is growing too slowly.

Read Full Story

Markets

S&P 500 2,190.19 -0.89 -0.04%
DJIA 19,158.78 -33.15 -0.17%
NASDAQ 5,252.36 1.25 0.02%
DAX 10,513.35 -20.70 -0.20%
HANG SENG 22,564.82 -313.41 -1.37%
NIKKEI 225 18,426.08 -87.04 -0.47%
USD (per EUR) 1.07 0.00 0.09%
USD (per CHF) 1.01 0.00 -0.06%
JPY (per USD) 113.65 -0.26 -0.22%
GBP (per USD) 1.27 0.01 0.82%

From Our Partners